A Simple Outsourcing Guide For Businesses

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Do you want a simple outsourcing guide – here it is! It’s great having an in-house team. Having your own staff means that you can shape and mold them. You can develop loyalty in your team, train them, provide incentives for them and importantly – build relationships that will hopefully flourish and last.

#Outsourcing can dramatically reduce the complexity of managing your business. Click To Tweet

However ideal that might sound, it is not always the case. Managing your in-house teams can be complicated. You will need:

  • an HR department to ensure that they have employment contracts
  • a recruitment team to hire the staff
  • another team to train your employees when they start working with you
  • and a payroll department to make sure that all of your staff are paid on time.

You might find that your staff turnover is higher than expected. No sooner have you trained your staff, they seem to leave, which can be very unproductive. It might not be your fault, but it can have a great cost on your business.

Outsourcing can dramatically reduce the complexity of managing your business. Your outsourced IT team will learn more within a company whose primary focus is delivering specialist IT support to a number of businesses.

Your recruitment and payroll could be handled by specialist companies, who will always be at the top of their industries. It makes far better business sense to pay to use a service where someone else has invested a lot of time and money into training and developing.

There are two ways you could outsource in your business. Let’s look at this simple outsourcing guide.

Firstly – business critical areas that are not central to your strategy.

For example, warehousing or delivery of your product. It would be very costly to pay for storage space, buy vans and pay the staff to move your stock around. It would be better to pay a company who already has all of these things. You wouldn’t, however, want to hire an external company to undertake your research and development.

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Secondly – commodity tasks.

There are often many simple tasks that need to be undertaken in your business. For example, cleaning would be a low-value commodity task. There may be one-time-only tasks that you need undertaking, such as designing a new company logo. You could hire a graphic designer to come and work in-house, but once the task is completed, you might not have any work for them to do in the future. This is a clear example of a short term, high-value commodity task that should be outsourced.

Whenever you do hire outside agencies to complete a single task or, permanently manage a set of processes for you – be sure and be specific in your expectations. Ensure that any contract that you enter into with another company lays out an exact time frame and costing for the job to be completed.

Completing the work within their agreed financial constraints is another part of the reason you are outsourcing. Therefore, to allow a project to run over time and budget is costly to your business, and outsourcing to subcontractors is certainly a way of managing that risk.

I hope this simple outsourcing guide has provided you with some useful tips to get ‘things moving in the right direction’ when it comes to outsourcing for your business needs.

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